Pure Gold Secures $90 Million Construction Financing Package
Pure Gold Mining closed $90 million with Sprott Resource Lending to develop an underground mine at Pure Gold's Madsen Gold Project.
Pure Gold's board has approved the deicision to proceed with mine construction. The company aims to pour its first gold by the end of 2020.
"With access to the capital provided by the Financing, the construction of the Madsen Red Lake Mine is now fully funded," said Darin Labrenz, President and CEO of Pure Gold in a news statement. "We are very pleased with the financial commitments that Sprott have made towards the development of the Project. We have achieved our objective of securing a flexible financing package on terms that are competitive and protect the upside for our shareholders. The optionality of repayment of both the Facility and the Gold Stream in a rising gold price environment provides an opportunity to refinance once in production and generating solid cash flows from the mine. Combined with the recently completed equity financing, this package secures approximately C$90 million of immediate funding enabling us to initiate construction and puts us on track for first gold pour by late 2020."
Dusan Petkovic, Principal of Sprott, commented in a statement, "As one of the largest investors dedicated to the natural resource sector, Sprott is excited to partner with Pure Gold on the development of the Madsen Gold Project. Our partnership with Pure Gold is consistent with our strategy of providing innovative and flexible capital to maximize the value of exceptional projects. We are pleased to participate alongside our colleagues at Sprott Capital Partners and play an integral role in fully funding the construction of the Madsen Red Lake Mine."